Onicra MSME Business Confidence Index for Q4 FY 2015–16 reflects growth and expansion

Gurgaon, Feb 9 (KNN) ONICRA MSME Business Confidence Index (BCI) for the fourth quarter of financial year 2015–2016 (Q4 2015–16) is estimated at 147.32 points (an increase by 5.03 points from 142.29 in Q3 FY 2015–16), which reflects growth and expansion of the sector.

The index for Q3 FY 2015–16 had registered a fall by 4.28 points, compared to Q2 FY 2015–16. An increase in the index reflects positivity in business sentiments and vice versa, said the report by Onicra Group.

MSME is a key sector contributing significantly to the economy and GDP. MSME BCI is a projection endeavouring to understand the sector’s growth and business environment for the quarter ensuing by gauging responses of small businesses. The index is measured on a scale of 0–200. An index above 100 indicates positive outlook and vice versa.

According to BCI, 88.08% Indian MSMEs expect an increase in number of new orders, 81.04% expect an increase in operating margin, 59.02% expect an increase in number of employees, 61.76% expect an increase in selling price, 87.17% expect an increase in access to finance during Q4 2015–16, 33.94% expect an increase in level of external borrowings, 71.60% see a stagnation in export volume, 69.71% anticipate depreciation in Indian rupee (INR), the report highlighted.

Out of all the industries aggregated, ‘construction and engineering’ led the rally while being bullish at 153.96 points, followed immediately by ‘agriculture and allied products’ at 149.94 points, closely run by ‘textile’ at 149.56 points.

“ONICRA MSME Business Confidence Index is bullish, in fact, on the back of consumption driver in the Indian economy in contrast to other emerging economies. This shall prove as the singular factor pushing India Inc. on the path to recovery,” said the report. (KNN Bureau)